Each of the following situations reveals an internal control weakness. a. Accounting firms use…

Each of the following situations reveals an internal control weakness.

a. Accounting firms use paraprofessional employees to perform routine tasks. For example, an accounting paraprofessional might prepare routine tax returns for clients. In the firm of Dunham & Lee, Rodney Lee, one of the partners, turns over a significant portion of his high-level accounting work to his paraprofessional staff. (pp. 217–218)

b. In evaluating the internal control over cash payments of Butler Manufacturing, an auditor learns that the purchasing agent is responsible for purchasing diamonds for use in the company’s manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent’s work. (pp. 233–234)

c. Charlotte James owns an architecture firm. James’s staff consists of 12 professional architects, and James manages the office. Often, James’s work requires her to travel to meet with clients. During the past 6 months, James has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. James learns that when she is away, 2 of her senior architects take over office management and neglect their normal duties. One employee could manage the office. (pp. 217–218)

d. B.J. Tanner has been an employee of the City of Marlin for many years. Because the city is small, Tanner performs all accounting duties, plus opening the mail, preparing the bank deposit, and preparing the bank reconciliation. (pp. 217–218)

e. Part of an internal auditor’s job is to evaluate how efficiently the company is running. For example, is the company purchasing inventory from the least expensive supplier? After a particularly bad year, Long Photographic Products eliminates its internal audit department to reduce expenses. (pp. 218–219)

❙ Required

1. Identify the missing internal control characteristic in each situation.

2. Identify each firm’s possible problem.

3. Propose a solution to the problem.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!